AMY Amey

    For immediate release                                   21 January 2003                         
                                                                                                

Amey plc

Agreement for disposal of PFI Equity

The Board of Amey announces that Amey yesterday signed a conditional sale
contract in relation to the disposal of a portfolio of PFI projects to Laing
Investments Limited ("Laing").  In addition, on completion of the sale, Amey
and Laing will enter into a non-exclusive Co-operation agreement relating to
the future execution and financing of certainbidding activities acrossa range
of PFI sectors. 

The total value of the conditional contract is �42.9 million, including the
assumption of future equity commitments of �13.8 million relating to four of
the eight projects included within the portfolio.  The remaining �29.1 million
will be satisfied in cash.  In addition Amey will still be entitled to recover
previously expensed bid costs relating to the existing PFI project bids when
they reach financial close.  The Board expects that these amounts should be
recovered in the first half of 2003.

                                                           

The investment portfolio consists of Amey's interests in eight existing PFI
concession companies all of which are in the UK road and accommodation
sectors.  The London Underground investment rights and the Croydon Tramlink
investments are excluded from this transaction.  Other Amey Group companies
retain the valuable long term maintenance and service contracts that support
the concession companies.

The Group's share of turnover and profit before tax from the portfolio of
projects for the year ended 31 December 2001 were �42.2 million and �13.2
million respectively and the Group's share of net assets in the projects at
that date totalled �25.1 million.

It is anticipated that the cost sharing arrangements that will be entered into
as part of the Co-operation agreement will, in certain sectors, make a
significant contribution to the costs of participating in PFI projects in the
future.

The sale proceeds will be used to reduce the Group's funding requirements and
the assumption by Laing of Amey's share of the future equity commitments
relating to the projects will reduce demands on existing funding requirements. 
The sale contract is conditional upon the receipt of necessary third party
consents, including the consent of Amey's lenders, shareholders and other third
parties.

A shareholder circular with further details of the transaction will be posted
in due course.  The long stop date for satisfaction of the conditions to the
sale contract is 14 March 2003.

Sir Ian Robinson, Chairman, commented:

"This is a positive development for Amey as it will realise cash and reduce the
Group's working capital requirement.  Amey will retain its valuable long term
maintenance and service contracts and looks to achieve its stated strategy to
continue as a leading participant in the growing PFI market, but with a
significantly lower cost base.   In addition, Amey will retain the fee and cost
recovery on the projects in the current bid pipeline."

 

General Issues

Amey's discussions with its lenders are proceeding and the Group considers that
they remain supportive.

 

The Board of Amey has noted recent press speculation regarding a possible offer
being made for the Company.  Although tentative interest in the Company has
been expressed, the Company wishes to emphasise the very preliminary nature of
this interest.

                                    -Ends-                                     

For further information please contact:

Anthony Cardew, CardewChancery                            T: 020 7930 0777   
                                                                             



END

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